Unemployment may be as high as 20%. The stock exchange this year has slumped by a tenth. Tourism, which used to account for 12% of Egypt’s GDP, has evaporated. Foreign investment has dried up. Foreign reserves have shrunk. Many of Egypt’s most dynamic businessmen have fled, fearing they will be arraigned for complicity with Mr Mubarak.

Are you thinking what I am thinking? “And after the commercial break: Greek style economic meltdown on Israel’s southern border”.

Not worried yet? well, read on:

Egypt needs a government that can take some difficult decisions swiftly. To that end, Mr Morsi should select a fresh team of ministers from a much wider ideological spectrum, including technocrats and secular-minded people as well as his own Islamist brethren….Without people willing to put their country before themselves, Egypt faces economic collapse.

Call me a pessimist, but I just don’t see Morsi being able to “reach across the aisle” and to muster enough consensus across Egypt’s political spectrum to push through much-needed economic reform.

What could this mean for Israel?

Worst case scenario: In a bid to score much-needed political points Morsi adopts a much tougher anti-Israel tone. The Salafist follow suit. Due to inability to fix the economic situation, both sides try to outbid each other in their anti-Israeli policies. This could mean calls to change parts of the peace treaty or even attempts to do so.

Best case scenario: In order to secure more funds from the West, Morsi becomes even more pro-western and more pro Saudi.

What could this mean for Iran?

Worst case scenario: see the best case scenario for Israel.

Best case scenario: In order to increase his own bargaining power and leverage against the West, he could start improving his relations with Iran. Unlikely for now, but stranger things have happened at sea, as the saying goes.

The problem for Israel is that even the best case scenario is likely to be quite unsettling.